Suppose that the Fabulous Hotel hires you as head chef under a two-year employment contract. After two years, another hotel wants to hire you. However, in the original employment contract you signed with the Fabulous Hotel, the following paragraph appears:
“The below-signed agrees not to work as a chef for another hotel in the same metropolitan area for a period of two years after leaving our employ.”
- Describe and analyze the five elements of a contract that must exist for this agreement to be enforceable.
- Explain why this contract is governed by common law or the Uniform Commercial Code (UCC).
- Examine at least two circumstances in which this non-compete agreement would be unenforceable.